Rajesh Sharma, son of the petitioner, has executed a Relinquishment Deed dated 1st March, 2020, in favour of the petitioner, with respect to the property bearing No. B-123, Ashok Nagar, Phase-I, Delhi. By the Impugned Or

CS Professional · Multidisciplinary Case Studies · PYQS · December 2022
Rajesh Sharma, son of the petitioner, has executed a Relinquishment Deed dated 1st March, 2020, in favour of the petitioner, with respect to the property bearing No. B-123, Ashok Nagar, Phase-I, Delhi. By the Impugned Order dated 5th March, 2020, the respondent no. 1, however, impounded the said document treating the same to be as a Gift under Article 33 of Schedule IA of the Indian Stamp Act, 1899 as applicable to the Union Territory of Delhi (hereinafter referred to as "Act") and thereafter held the Release Deed to be deficiently stamped and impounded the same. Aggrieved of the said order the present petition has been filed. Explain whether the Impugned Order can be sustained and set aside?

Answer & Explanation:

The facts of the situation given in the question are similar to a case in Tripta Kaushik vs. Sub Registrar Vi-A, Delhi & Anr on 20 May, 2020. The relevant part of the case is discussed as under: Whether the instrument amounts to a release document or not is not a pure question of law. The test to determine whether an instrument can be considered as a Release/ Relinquishment Deed can be summarized as under: In determining whether the document is a release or Gift/ Conveyance, the nomenclature used to describe the document or the language which the party may choose to employ in framing the document, is not a decisive factor. What is decisive is the actual character of the transaction intended by the executants; Determination of the nature of the document is not a pure question of law; Where a co-owner renounced his right in a property in favour of the other co-owner, mere use of word like, "consideration" and "transfer" would not affect the true character of the transaction; What is intended by a Release Deed is the relinquishment of the right of the co-owner; Co-ownership need not be only through inheritance, but can also be through purchase; Where the relinquishment of the right by the co-owner is only in favour of one of the co-owner and not against all, the document would be one of Gift/Conveyance and not of "release". Applying the above test to the facts of the present petition, the Relinquishment Deed dated 01.03.2019 has been executed by a co-owner in favour of the only other co-owner. This would truly be a Release Deed and falls within the ambit of Article 55 of the Act (Indian Stamp Act, 1899). The Impugned Order, therefore, cannot be sustained and is accordingly set aside. The petition succeeds. In view of the above of the abovementioned case, it may be said that impugned cannot be sustained and should be set aside.

Topics: Stamp Act

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